Liverpool Reports 9% Q4 Revenue Growth, Beating Estimates

El Puerto de Liverpool, one of Mexico’s leading retail chains, reported a 9% increase in consolidated revenue for the fourth quarter of 2024, surpassing preliminary estimates. The company attributed this growth to robust performance across all business lines.

The retail segment grew by 8.2%, driven by private-label brands, customer loyalty programs, and key promotional events such as El Buen Fin and the Night Sale. Comparable store sales rose 7.3% for Liverpool and 5.2% for Suburbia, reflecting stable consumer demand in both formats.

The digital channel also showed strong growth, with gross merchandise value (GMV) increasing 16.1% for Liverpool and 39.4% for Suburbia compared to the same period in 2023.

Operating expenses increased by 2.4%, mainly due to extraordinary events in 4Q23, including weather-related damages in Acapulco and costs related to relocating the company's Softlines warehouse. Excluding these impacts, comparable operating expenses grew by 7.8%.

Provisions for doubtful accounts reached MX$1.53 billion, reflecting portfolio growth and a conservative risk management approach. The company noted that increased credit issuance in the sector has affected delinquency rates and customer indebtedness. However, higher revenue from the credit segment offset these effects. The non-performing loan rate over 90 days stood at 3.2%, consistent with previous disclosures.

EBITDA grew by 5.3%, achieving a margin of 19.7%, while net income increased by 11.4% year-over-year.

Liverpool invested MX$12.13 billion in capital expenditures during 2024, marking its highest investment level in Mexico. By the end of the year, the company operated 511 assets, including Liverpool and Suburbia stores, Liverpool Express locations, boutiques, and shopping centers.